The year 2025 is shaping up to potentially be a wild ride in container shipping. From potential strikes to looming increased tariffs and Chinese New Year, there’s a lot to keep an eye on. Let’s break down the key challenges and see how they might impact your supply chains.
East Coast Showdown: The ILA Contract Negotiations
The International Longshoremen’s Association (ILA) contract is up for renewal in 2025, and negotiations could get heated. A potential January 2025 strike on the East Coast would throw a major wrench in the gears, causing significant delays and potentially driving up costs. The Summer of 2024 was challenging to say the least – nobody wants a repeat of that!
What you can do: Start planning now! Diversify your port gateways (if possible), consider alternative transportation options (like rail or trucking), and build some extra time into your delivery schedules.
Election Year Uncertainty: Tariffs on the Horizon?
The 2024 U.S. elections could bring changes to trade policies, with the possibility of new and/or increased tariffs on imported goods. This could lead to a surge in imports as shippers try to “beat the clock” and bring in cargo before any new tariffs take effect. This could lead to a serious space crunch on vessels, especially on routes to the United States.
What you can do: Stay informed about trade policy developments and be prepared to adjust your sourcing and shipping strategies accordingly. If possible, explore alternative sourcing options to reduce your reliance on imports subject to potential tariffs.
Chinese New Year: Capacity Crunch
Chinese New Year is always a challenging time for shippers, as factories close and vessel space tightens. In 2025, shippers may encounter above normal capacity constraints and potential spot rate hikes.
What you can do: Forecast, forecast, forecast…Plan your shipments well in advance and book early. Consider using premium services if you have time-sensitive cargo. And don’t forget to factor in additional lead times that are typical around this time of year.
Transpacific Contract Negotiations: Ocean Carrier Dream
All of these factors—the ILA negotiations, potential tariff increases, and the Chinese New Year capacity crunch—could have a major impact on the 2025 transpacific contract negotiations. Expect carriers to be in a strong position.
What you can do: Contact the IHSA and start preparing for negotiations early. You should be prepared to be flexible. Consider building in some contingencies to protect yourself against potential disruptions.
Conclusion
The year 2025 is shaping up to be a challenging one for shippers, but with careful planning and proactive strategies, you can be successful. Stay informed, stay flexible, and don’t be afraid to think outside the box!
Craig Akers
Executive Director
About the IHSA
Don’t miss out on the significant savings available exclusively to IHA members through your shipper community, the IHSA. From May through Oct 2024, members have saved a staggering $3M to $4M on ocean freight costs.
Take advantage of this valuable resource today! Visit the International Housewares Shippers Association website or email team@shippersassociation.org to learn more and start saving.
Onboarding Timeline
Member onboarding status for 2025: Open
We typically start the onboarding process in November/December for the next shipping season.
- November to December: Setup member profile (shipping information / services)
- November to March: Commit your volume (some shippers already committing for 2025-26)
- Must complete before April: We add your company to ocean freight contracts
- April – May: Make your first booking
